Isn't speculation and volatility problem for cryptocurrency? - page 2.

Janation

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Quote from: Pumpkin on August 07, 2017, 05:21:09 AM

Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

I don't think so, Bitcoin's volatility is the reason most of the people get or being attracted in investing on this digital currency, saying this, the word speculation comes. Speculation help investors and users to keep in mind what may happen in the near future. With that they can evade or keep their bitcoin from the near dumps or near pumps. All we got to do is to be active on this forum and just keep reading/

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Some services or stores that wish to receive payments in bitcoin but want to convert the payment into fiat immediately could use the services of Bitpay. For those who wish to accept bitcoin but don't want to get affected by the constantly changing price of bitcoin in USD should at least think about the idea since it's a given fact that bitcoin is a volatile asset. It's not really a problem at all however the fees is where most of the problems will go to.

cafucafucafu

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Quote from: Pumpkin on August 07, 2017, 05:21:09 AM

Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

Some people will say that is a problem and some people will say that is what makes Bitcoin special. In my opinion I think that Bitcoin revolves around the idea that it is volatile and the prices will go up and down a lot. There are benefits to it as well as problems to it. To some people, that is how they make a lot of there money. Sell when the price is right and buy when the prices are lower.

We can't change it's volatility though since it is decentralised and the only way to make it more stable is to centralise it which will never happen.

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Quote from: Pumpkin on August 07, 2017, 05:21:09 AM

Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

It's a problem for some but it's how others make a living.

It's a double edged sword, really. You have to cope with volatility if you are going to use bitcoin, that's for sure. And speculation and volatility are closely linked together, you cannot solve the problem of volatility without getting rid of wide spread speculation.

Personally, i am completely used to bitcoin being volatile. I believe that this is a temporary issue with anything that is decentralized and is still not mature. People are going to speculate. But as more people join the bitcoin revolution, the price will stabilize naturally as normal economic activity outweighs speculators.

By that stage, less volatility due to more actual users and merchants will lead to less volatility, and therefore less of a profit margin for speculators, and less volatility as a result.

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Quote from: Pumpkin on August 07, 2017, 05:21:09 AM

Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

Bitcoin and volatility will always be together whether we like it or not. Bitcoin is decentralized and volatility is a result of it. It depends on the supply and demand so volatility will stay. And since the volatility is there, we cannot avoid some speculations to happen. Volatility and speculations has been a part of Bitcoin and you cannot say that it is a problem.

iamTom123

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Volatility has been an issue with Bitcoin since I can remember. But I am wondering: is volatility not a product of many people getting into Bitcoin? And if that is the case, the only way to control volatility is limiting people's access to Bitcoin? Or maybe establishing a central bank for Bitcoin that can easily intervene in the market anytime there is an uptick in Bitcoin?

One thing for sure, Bitcoin is very attractive to many of us (I believe we are all speculators with Bitcoin, right) because it can easily rise in value and this is where volatility is coming from, right? I am not an expert on this and I can be wrong though. Just correct me with any of my notions here.

Will controlling volatility makes Bitcoin more attractive to merchants but less attractive to us?

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Quote from: BurstIncomeAsset on August 10, 2017, 07:06:15 AM

For the ecosystem isn't a problem at all because some people get attracted to Bitcoin because of the volatility and speculation, and stay because of Bitcoin's intrinsic value.

For the users isn't bad at all too because you can decide what level of risk you would like to take and how much you can invest and would be willing to risk. It is only a problem if you are not prepared or isn't mature enough yet

How can you be so sure everyone is really having any attraction on bitcoin? Most of people sure going for bitcoin and nowadays their technology is really developing but still there is people that do not believe in bitcoin

And for the users, I think it just based on themselves whether they are going to get profit or not. Every steps sure have some risks but if you can overcome that, you will end up with goos profit for sure

jc89

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Volatility for most people is a problem. But if you were to ask a trader, volatility is actually a beacon for them. It is an attractive feature. It offer traders the chance to help in regulating the price of btc. While speculation on the other hand is a factor for bitcoin price to pump. So I think for me, both are not mainly a problem but it actually depends on what kind of a bitcoin user are you.

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Quote from: Pumpkin on August 07, 2017, 05:21:09 AM

Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

That's why so many known companies refuses to accept bitcoin as main payment method. But there are good alternatives to bitcoin which can do it's payment function under less volatile market conditions. I know few projects have this feature which can control daily percent change of token/coin. Anyway the world is not ready to fully transfer payment system to digital money.

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Quote from: alyssa85 on August 10, 2017, 06:43:21 AM

Quote from: Kyraishi on August 10, 2017, 05:16:30 AM

When more people start using bitcoin bitcoin will be seen as value itself. Right now, people are constantly checking bitcoin values in USD, but if bitcoin becomes mainstream people will just accept bitcoin "as-is", and price will stabilize.

As long as fees are high people simply won't use it. Nobody is going to pay $3 in fees when buying an item that costs $25.

When I first started in bitcoin, you could actually send stuff for no fees at all if your coins were aged enough. The good old days!

In recent days people worry about the fees because of fees has been increased to high value. After segwit2x activation now transaction fees seems little bit increased and I expect localbitcoins to reduce the deposit fees or taken that away from the site.

BurstIncomeAsset

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For the ecosystem isn't a problem at all because some people get attracted to Bitcoin because of the volatility and speculation, and stay because of Bitcoin's intrinsic value.

For the users isn't bad at all too because you can decide what level of risk you would like to take and how much you can invest and would be willing to risk. It is only a problem if you are not prepared or isn't mature enough yet

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Quote from: Kyraishi on August 10, 2017, 05:16:30 AM

When more people start using bitcoin bitcoin will be seen as value itself. Right now, people are constantly checking bitcoin values in USD, but if bitcoin becomes mainstream people will just accept bitcoin "as-is", and price will stabilize.

As long as fees are high people simply won't use it. Nobody is going to pay $3 in fees when buying an item that costs $25.

When I first started in bitcoin, you could actually send stuff for no fees at all if your coins were aged enough. The good old days!

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Quote from: Pumpkin on August 07, 2017, 05:21:09 AM

Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

It is a problem. But it really can't be solved unless there are more people using bitcoin.

I think that Blackmoon crypto pretty much nailed this one. When more people start using bitcoin bitcoin will be seen as value itself. Right now, people are constantly checking bitcoin values in USD, but if bitcoin becomes mainstream people will just accept bitcoin "as-is", and price will stabilize.

Value is subjective, if everyone believes that bitcoin has a stable value, it will have a stable value.

But right now, not enough people use it and accept it. Volatility is actually good to some degree, imo. It means that bitcoin is independent of government intervention and is a truly free currency. Traders love it as well.

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Quote from: Pumpkin on August 07, 2017, 05:21:09 AM

Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

Yes,speculation and volatility are big problems for crypto currencies,especially bitcoin.It is due to this volatility problem,some countries have not yet legalized bitcoin.Retailers don't come forward to accept bitcoin payments due to this volatile nature.But volatility is the nature of a decentralized currency and hence,it could not be solved completely.

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Quote from: Blackmoon Crypto on August 07, 2017, 05:25:23 AM

Quote from: Pumpkin on August 07, 2017, 05:21:09 AM

Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

This is a chicken and egg situation. For bitcoin's price to stabilize, a large scale economy needs to develop with more businesses and users. For a large scale economy to develop, businesses and users will seek for price stability.

Fortunately, volatility does not affect the main benefits of Bitcoin as a payment system to transfer money from point A to point B. It is possible for businesses to convert bitcoin payments to their local currency instantly, allowing them to profit from the advantages of Bitcoin without being subjected to price fluctuations.

I'm going to disagree. Volatility DOES affect the ability of businesses to use bitcoin. For a start, bitcoin isn't "instant" anymore, it can take hours to confirm due to the small blocks, high fees and backlogs. By the time it does confirm, volatility can have made you a big fat loss.

IMO this is why we're not seeing adoption in the use of bitcoin as a currency, as opposed to as an asset.

Overstock has just enabled altcoins, in the hopes people use them instead. Lets wait and see if an alt emerges as a currency that can be actually used instead of bitcoin.

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Digital currencies were mostly speculative in nature and just because of that volatility serve as an driving force carrying the trust of the users who are into digital currency usage. Also if volatility is not found with bitcoin, then it could have gained same value as the normal fiat. Now just because of the volatility bitcoin has got multiple usage and becomes more valuable than fiat.

audaciousbeing

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Quote from: Pumpkin on August 07, 2017, 05:21:09 AM

Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

I would say they are both problems and at the same time comes with its own prospect depending on which one you decide to see and make decision after all when the speculations goes right or wrong, it affects everybody rather than only the one who speculate but the problem I see there is that it keeps putting bitcoin in the category of emerging currency which big organisation that would change the fortune of the technology less interested in it's adoption.

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Quote from: Pearls Before Swine on August 09, 2017, 04:13:13 PM

Those two things pretty much go hand in hand, I'd say. Same is true for other volatile assets, including
other currencies.
Are they a problem? Yes, imo. Except the volatility is what attracts the speculators (including me) in the
first place. If crypto was more stable, it wouldn't be as exciting. It'd be about as exciting as the USD.
Some people want that; I'll pass on that. As a way to make money, nothing beats crypto's volatility.
Also, more speculators give the market more liquidity and that's a good thing.

Speculators form a very small part of the bitcoin community. If the high volatility discourages businesses from using bitcoins, speculators can't make up for it. I suspect speculators will be around even if bitcoin's volatility decreases a bit.

Pearls Before Swine

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Those two things pretty much go hand in hand, I'd say. Same is true for other volatile assets, including
other currencies.
Are they a problem? Yes, imo. Except the volatility is what attracts the speculators (including me) in the
first place. If crypto was more stable, it wouldn't be as exciting. It'd be about as exciting as the USD.
Some people want that; I'll pass on that. As a way to make money, nothing beats crypto's volatility.
Also, more speculators give the market more liquidity and that's a good thing.

ActiveP

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The volatility is surely a problem for adoption, that said a whole eco system and economy has been built around it and it is thriving. We are talking billions of dollars and it is growing. The speculation is part of the fun and games.

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